Japan’s seasonally adjusted bank lending excluding trusts rose 6.3% YoY in June, the strongest pace since August 2020, driven by M&A, real estate and recovery-related loans, the BOJ said. The central bank said the data show credit channels remain open, reinforcing its view that financial conditions are still accommodative even after Governor Ueda raised the policy rate to its highest since 1995 last month. The BOJ cautioned the latest lending figures may not yet reflect the June rate rise; polic

Japan’s seasonally adjusted bank lending excluding trusts rose 6.3% YoY in June, the strongest pace since August 2020, driven by M&A, real estate and recovery-related loans, the BOJ said. The central bank said the data show credit channels remain open, reinforcing its view that financial conditions are still accommodative even after Governor Ueda raised the policy rate to its highest since 1995 last month. The BOJ cautioned the latest lending figures may not yet reflect the June rate rise; policymakers have repeatedly cited financial conditions as a key input when weighing further tightening. Robust loan demand suggests higher borrowing costs have not curbed corporate investment or household activity, supporting the case that the economy can absorb additional policy normalization. The BOJ’s Tankan showed corporate financial conditions improved for the first time in a year, and large firms reported easier commercial paper issuance conditions.